Accounting method selection using neural networks and multi-criteria decision making

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Abstract

The selection of accounting methods has significant impacts on companies' accounting results and strategic goals. However, this selection problem has not been effectively addressed by existing studies. To fill this important gap, we propose a novel approach for evaluating two accounting method alternatives, namely Full Cost (FC) and Successful Effort (SE) with an empirical case of an oil and gas company. Neural networks (NNs), fuzzy multi-criteria decision making (MCDM) with optimal weighting are applied to evaluate the consequent effects of FC and SE on strategic goals of the case company. The empirical study conducted demonstrates the effectiveness of the proposed approach. Methodologically, this paper provides a structured approach for evaluating accounting method alternatives in a rational and informed manner. Empirically, the evidence obtained from applying the proposed approach can be used to support the case company's decision on accounting method selection.

Original languageEnglish
Title of host publicationProceedings of the 54th Annual Hawaii International Conference on System Sciences
EditorsTung X. Bui
Place of PublicationNew York NY USA
PublisherIEEE, Institute of Electrical and Electronics Engineers
Pages1550-1559
Number of pages10
ISBN (Electronic)9780998133140
DOIs
Publication statusPublished - 2021
EventHawaii International Conference on System Sciences 2021 - Online, United States of America
Duration: 4 Jan 20218 Jan 2021
Conference number: 54th
https://scholarspace.manoa.hawaii.edu/handle/10125/72112 (Proceedings/Website)

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
PublisherIEEE, Institute of Electrical and Electronics Engineers
Volume2020-January
ISSN (Print)1530-1605

Conference

ConferenceHawaii International Conference on System Sciences 2021
Abbreviated titleHICSS 2021
Country/TerritoryUnited States of America
Period4/01/218/01/21
Internet address

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